Many people are wondering if a Healthshare plan can be HSA-qualified.  A health savings account (HSA) is a tax-deferred medical savings account. You can put pre-tax money in the account that then gains tax-deferred interest and rolls over from year to year. HSAs are a great way to save up money for medical expenses your high-deductible health plan (HDHP) doesn’t cover, like acupuncture, glasses, and dental care, to name a few. 

Currently, you can only contribute to an HSA if you have an HSA-qualified health insurance plan, and there are strict rules that dictate which plans are qualified. However, can a healthshare plan be HSA-qualified?

The short answer is no, but the long answer is… check this out! 

By pairing a low-cost health sharing plan with an HSA-qualified health insurance plan, you can have your cake and eat it, too. 

First, in case you don’t know, healthshare plans aren’t insurance. 

Instead, healthshare organizations facilitate the sharing of medical expenses between members. Members often, but not always, know where their money is going to.

Currently, there are more than a million members of healthshare plans, the driving motivation being the affordability. The monthly contribution amount, much like a premium, is often half what a typical insurance plan would cost.

Because they’re not insurance, they cannot be “HSA-qualified.”

How to have an HSA-qualified healthshare plan, and continue to contribute to an HSA

Many of our clients have signed up for an HSA-qualified “MEC” plan. MEC stands for “Minimum Essential Coverage.” To legally qualify under this designation, a plan must cover required preventive benefits. 

They pair this MEC with a healthshare that pays for larger medical expenses, such as hospitalization and surgery.

The result is a very affordable plan that also enables you to contribute to an HSA. 

The HSA contribution limits for 2020 are $3,550 for an individual, and $7,100 for a family.

Do you have any questions?

Have we piqued your interest? If you’d like to explore how this kind of program may work for you, please get in touch.